How does Public Liability Insurance work?

Public Liability Insurance in action

An elderly parishioner slips on a cracked step and falls while walking out of Church. She breaks her hip requiring surgery and extensive rehabilitation.

The Parish is found to be liable because it failed to properly maintain the steps. The injured parishioner receives $75,000 in compensation, which is paid by CCI, along with the Parish's legal costs, thanks to the Parish's Public Liability policy.